Wednesday, September 30, 2009
How is HERA\HOEPA EFFECTING YOUR BUSINESS?
In 2008 Congress, Fannie Mae and Freddie Mac put into place new regulations that effect home buyers and timelines for closing a home purchase. This recent legislation is likely to result in significant changes in how the mortgage industry operates. HERA is the Housing and Economic Recovery Act. This amends the Truth and Lending (TIL) act setting early and final receipt of the TIL disclosure part of the timeline for closing. HOEPA is the Home Ownership and Equity Protection Act. This legislation is lenthy so I provided a link that will inform you. This is especially important to mortgage consultants and how they conduct their purchase and refinance business. Once you are at the site go to the Industries tab and select Banking and Capital Markets. You will find a PDF that you can download which explains in detail the new legislation. Let me know if this site is informative.
Monday, September 28, 2009
Obama's Home Affordable Mortgage Program
Making Home Affordable will offer assistance to as many as 7 to 9 million homeowners, making their mortgages more affordable and helping to prevent the destructive impact of foreclosures on families, communities and the national economy.
The Home Affordable Refinance program will be available to 4 to 5 million homeowners who have a solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac. Normally, these borrowers would be unable to refinance because their homes have lost value, pushing their current loan-to-value ratios above 80%. Under the Home Affordable Refinance program, many of them will now be eligible to refinance their loan to take advantage of today’s lower mortgage rates or to refinance an adjustable-rate mortgage into a more stable mortgage, such as a 30-year fixed rate loan.
GSE lenders and servicers already have much of the borrower’s information on file, so documentation requirements are not likely to be burdensome. In addition, in some cases an appraisal will not be necessary. This flexibility will make the refinance quicker and less costly for both borrowers and lenders. The Home Affordable Refinance program ends in June 2010.
The Home Affordable Refinance program will be available to 4 to 5 million homeowners who have a solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac. Normally, these borrowers would be unable to refinance because their homes have lost value, pushing their current loan-to-value ratios above 80%. Under the Home Affordable Refinance program, many of them will now be eligible to refinance their loan to take advantage of today’s lower mortgage rates or to refinance an adjustable-rate mortgage into a more stable mortgage, such as a 30-year fixed rate loan.
GSE lenders and servicers already have much of the borrower’s information on file, so documentation requirements are not likely to be burdensome. In addition, in some cases an appraisal will not be necessary. This flexibility will make the refinance quicker and less costly for both borrowers and lenders. The Home Affordable Refinance program ends in June 2010.
Saturday, September 26, 2009
Friday, September 25, 2009
Mortgage Programs
Welcome to my blog. I am a mortgage consultant for the second largest lending institution in the country. I have been a mortgage consultant for more than ten years and I have been apart of many lending environments. The days of the exotic loans such as 100 percent financing with no income verification and the ARM, adjustable rate mortgages are long gone and left in its wake millions of people who are upside down on their mortgage payments. However there are some options available to save people from forclosure. One program that was rolled out in the spring is called the HARP program. It stands for Home Affordabilty Refinance Program.
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